The Treasury has signed off narrow technical changes to keep bank prudential rules coherent when selected UK CRR provisions are revoked on 1 January 2026. The Statutory Instrument-Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025-comes into force on that date, following parliamentary approval. The UK Parliament’s Statutory Instruments register confirms the commencement date. This tidy‑up sits alongside HM Treasury’s Commencement No. 10 Regulations, which switch off parts of the UK CRR on 1 January 2026 with savings for existing PRA permissions. In practice, prudential requirements continue under PRA rules rather than EU‑derived text.

What actually changes is limited and targeted. The regulations: adjust Banking Act 2009 definitions around Common Equity Tier 1 instruments and “own funds requirements”; streamline the “response period” definition in the Bank Recovery and Resolution (No. 2) Order 2014 by removing now‑redundant CRR cross‑references; remove a superseded sub‑paragraph in the 2019 Financial Conglomerates EU Exit regulations; and update the Bank Levy (Loss Absorbing Instruments) Regulations 2020 so that references no longer point to CRR Article 92a. Law firm briefings and Parliament’s SI listing summarise these points and the 1 January 2026 start.

Most of the heavy lifting is already in the PRA Rulebook. HM Treasury’s Commencement No. 10 note makes clear that revoked CRR provisions are replaced by PRA rules, and existing PRA permissions continue by way of savings. For firms, that means capital planning and documentation should align to the PRA Rulebook wording rather than legacy CRR citations.

Capital numbers should not move because of this instrument. It changes cross‑references, not calibrations. But the wording matters: internal policies that still cite CRR Articles for Common Equity Tier 1 or own‑funds requirements should be refreshed to the PRA equivalents to avoid ambiguity in ICAAPs, risk appetite statements and investor disclosures. The A&O Shearman note is explicit that these are consequential amendments designed to maintain legal coherence.

Resolution teams will spot a small fix in the Bank Recovery and Resolution (No. 2) Order 2014: the definition of “response period” drops references to CRR Articles 92a and 494. That removes EU‑era hooks that no longer drive UK resolution policy, which now rests on the Banking Act and Bank of England statements of policy. Expect process, not outcome, changes for information‑gathering timetables.

For group supervisors, the Financial Conglomerates amendment is housekeeping-removing a redundant sub‑paragraph in Regulation 7(6) about technical calculation methods. Day‑to‑day capital consolidation and coverage ratios continue to follow PRA and FCA rules; the aim here is consistency once CRR text falls away.

Tax teams should focus on the Bank Levy adjustment. By pruning the reference to CRR Article 92a in the definition of a “relevant requirement”, the levy rules lean more squarely on UK loss‑absorbing capacity regimes rather than CRR wording. HMRC’s guidance on the 2020 loss‑absorbing instruments regulations explains the policy intent-qualifying instruments must support a regulator’s LAC/MREL requirement-so firms should double‑check deduction eligibility under the updated cross‑references from their first levy period straddling 1 January 2026.

This SI lands just as the PRA has pushed the broader Basel 3.1 package to 1 January 2027, with shortened transitional windows to keep the 2030 end‑state. That delay means risk‑weight changes and the output floor bite later, but the legal clean‑up still arrives on 1 January 2026, so documentation and systems should be updated now.

Action for CFOs and treasury leads between now and year‑end is straightforward. Refresh internal and external documentation to replace CRR citations with the right PRA Rulebook provisions; check loan covenants, capital instruments and disclosure templates for any references to CRR Articles 92/92a/494; and confirm Bank Levy computations for loss‑absorbing instrument deductions use the updated definition of “relevant requirement”. These are low‑cost changes that reduce interpretation risk in Q1 reporting.

Bottom line: this is plumbing, not policy. From 1 January 2026, the rulebook signposts catch up with the UK’s post‑Brexit prudential model. The capital stack, resolution playbooks and the levy base do not shift because of this instrument, but getting the wording right will save audit queries and supervisory follow‑ups in the first half of 2026.